Simple Steps to Building Your New 7Home in Indianapolis

Transcription

1 Simple Steps to Building Your New 7Home in Indianapolis

2 TABLE OF CONTENTS Introduction Step #1 Planning Step #2 Choosing A Builder Step #3 Designing Step #4 Financing Step #5 Building Step #6 Closing Step #7 Warranty About Westport Homes

3 Introduction Your home will likely be the biggest purchase you ll ever make. And you may even do it a few times in your life. Regardless of how experienced you are at buying homes, it is a huge decision, and one that you ll potentially live with for a long while. That said, it s not surprising that buyers often feel overwhelmed when facing a new home purchase. Every time, there are so many things to consider, and if you ve never bought a new home, the unknown can be more than a little unsettling. As a homebuyer, you want to know what to expect, what you might not know to ask, and what can make the process go smoothly. Or maybe you just need a reminder, a checklist to follow so you don t miss a thing. In this free guide, we ll walk you step by step through each stage of the buying process. We ll discuss what goes into the planning, designing, financing, building, closing day and warranty stages of buying your new home in Indianapolis. Let s get started! 3

4 Step #1 Planning In the planning step, set your parameters for a new home. Think about what you want and what you need with regard to location, payment, and lifestyle fit. Location Location is often the most important requirement for homebuyers. Perhaps, your number one desire is to live within the best school district for your children, or maybe you prioritize living near your workplace for a quicker commute. Shopping, dining and entertainment options also may sway your new home s location preference. Your community location might encompass other places you regularly frequent, such as parks and workout facilities. Cost You can find a wide variety of home prices when looking for your new home in Indianapolis. Searching only by location won t separate the starter homes from the showcase homes. If, like most buyers, you are on a budget, you ll likely need to decide upon the investment you are willing to make in your new home. You can use our mortgage calculator to find your price range based on your desired monthly payment. Lifestyle Fit Your previous residence may have lacked that certain je ne sais quoi. Maybe you wanted a master bedroom on the ground floor, a huge home site with tons of green space, or an upstairs laundry room. Maybe what you really wanted was double the closet size, or maybe your needs have simply changed and you re up or downsizing. Make a list of your style preferences during the planning step of the process to make sure you don t miss out on those features that would make it the right home for you. 4

5 Step #2 Choosing A Builder A Google search for home builder in Indianapolis yields about 10.7 million results. That s less than helpful. With all these options, how do you even start to find the best partner to work with when building your new home? Build A Short List Rather than relying on a home builder Google search, check with your local builders association for a list of members. Builders Association of Greater Indianapolis and Indiana Builders Association are great resources for this. You can also check real estate listings at MLS.com to find out which builders are active in the area and the kinds of houses they build. Remember to ask friends and family for recommendations and even local real estate agents to build your short list. Check References Next, look up Better Business Bureau ratings and contact the builders you re considering to ask for contact information of recent buyers. You can also drive through a community built by each potential partner to see their work. If you go on a weekend, you re more likely to catch homeowners outside jogging, walking their dogs, or doing yard work and be able to ask them whether they are happy with their homes. 5

6 Step #2 Choosing A Builder Interview Potential Builders Confirm that the builder has experience with the type of home you re looking to build. Make sure their available floor plans match with what you want and check into the amount of customization offered. Some other important topics for discussion are: Ask about energy efficiency Green features make for a cleaner home and save you money each month on utility bills by using less energy and water. Ask potential home builders about using building materials and suppliers that embrace sustainability and resource conservation. Check out how builders score on the Home Energy Rating System (HERS) Index online through Residential Energy Services Network (RESNET). The index demonstrates a home s total energy efficiency, with a lower score demonstrating a more energy efficient home. Based on HERS Index comparisons, you can save hundreds of dollars per year building a home compared to buying an existing home. Overall, you get a more efficient, comfortable and healthy home when your builder prioritizes energy efficiency. Check into a third-party warranty After the papers are signed and the new paint dries, you will want to know your new home in Indianapolis will last. Look for a home builder that offers a third party new home warranty to ensure your peace of mind. That way, your warranty is not limited by the success and longevity of your builder. Make sure the warranty is backed by a financially stable insurance company so if you ever have the need, you ll be well taken care of. Estimate all costs associated with the homes/communities you like Does the community require membership in a homeowners association and, if so, what are those dues? What are the other fees in terms of the home and development? Be sure to get the tax estimate for the property. Once you have your arms around the total cost of working with each builder, you ll be better able to make an informed decision. 6

7 Step #3 Designing You ve started thinking about what you want and need from your new home. During the design step, you ll nail down specifics. Inspiration This is when you will enjoy consulting your favorite home design magazines and blogs and pull up your Dream Home board on Pinterest. Home builders like Westport Homes employ design consultants and create design studios where you can choose the features that best fit your style. Routine Now is the time to think about your daily routine. What rooms do you currently frequent? Are they large enough for the activities you use them for? Would a different layout streamline your chores or help you relax better? Individuality Don t forget to consider what makes you, you. Your home should reflect your individuality. Design consultants have the experience to connect you with not only the most popular options in home exteriors, color schemes, paint and décor, but also the options in those categories that will showcase your style while meeting your functional needs. 7

8 Step #4 Financing Financing can be the most confusing step in the home-buying process. Whether you have bought one, two or three homes in your lifetime, this step never seems to get easier. Fortunately, you only really need to know your options, what gets factored into your loan, and what will make the process easier. Loan Options When it comes to financing, you have choices. 1. A conventional fixed rate loan offers the lowest fixed rate that won t surprise you down the road in terms of interest rate. If you have established credit, plan to be in your home for the long haul, and can put down 5 percent on your home, it might be the option for you. 2. If you know you plan to move after a few years, an adjustable rate mortgage can offer you the lowest rate. 3. An FHA loan allows for a low down payment and has flexible qualification guidelines. You can qualify for this type of fixed rate loan even if you have no established credit or if you have a lower credit score. 4. If you are an active military member, a veteran or the surviving spouse of a service member who died in the line of duty, you may qualify for a VA loan. 5. Rural and suburban homebuyers may qualify for a United States Department of Agriculture (USDA) home loan, which is a zero-down payment mortgage. You must meet income guidelines (low to medium household income) and location guidelines requirements for this loan type. 6. A Next Home loan offers down payment assistance of 3 percent or 4 percent. There are no purchase price limits, allowing more prospective homeowners who do not qualify as first-time homebuyers as well as first-time homebuyers, to qualify for this loan program. 7. The Mortgage Credit Certificate (MCC) program offers first-time homebuyers a Federal Tax Credit ranging from 20 percent to 35 percent of the interest paid on your mortgage each year, up to $2,000. Homeowners can claim the tax credit each year through the life of the mortgage, so long as it is the homeowner s primary place of residence. 8

9 Step #4 Financing Lender Considerations When a mortgage lender considers your application, they ll factor in: Your down payment. The more you put down, the less you ll need to borrow and the lower risk you ll be considered by the lender. Your credit score and standing. Your history shows the lender that you can commit to timely monthly payments for an extended period of time. Your employment history. Showing that you have a steady source of income indicates to the lender that you have the ability to make payments on a loan. Your existing debt in relation to your income. Your debt-to-income ratio is important to the lender because they need to know that you will still be able to make payments in the event of unforeseen circumstances. Your requested loan type. Different loan types have different prerequisites. If you have prior problems with your credit and are applying for a conventional fixed rate loan, the lender may not be as inclined to approve your application. Application Preparation Prepare application paperwork to take to your lender. The most common required documents are: Pay stubs Employment history W-2s, tax returns Bank statements Documentation of any other income sources Information on debts such as student loans and credit cards 9

10 Step #5 Building Once you have been pre-approved for your loan, your home builder will kick off the building process by ordering site surveys and building permits, preparing floorplans, and scheduling your first meeting with the construction superintendent. First Meeting Expectations The construction superintendent is the individual responsible for building your dream home. In your first meeting, you ll meet with him or her and review the survey, permits, floorplans, and construction contract. This is a great time to talk about your expectations and confirm what the superintendent needs and expects from you as well, including communication requests and any decisions they ll need you to make along the way as well as timelines for those decisions. You ll be able to keep in touch throughout the building process to get answers to any of your questions as they arise, and, depending on your builder, you ll have multiple on-site meetings with the construction team. 10

11 Step #5 Building Phases Of Construction Your on-site meetings will occur in different phases of construction and will be planned out in advance to limit safety concerns. Phases include: 1. Preparation of site 2. Foundation 3. Rough framing 4. Rough plumbing, electrical and HVAC 5. Insulation 6. Drywall, interior textures and exterior finishes 7. Interior trim, exterior driveways and walkways 8. Hard-surface flooring, countertops and exterior grading 9. Mechanical trims and bathroom fixtures 10. Mirrors, shower doors, flooring and landscaping At the end of the building process, you ll walk through and make a punch list of any remaining work and/or repairs to be made on the house. You and the construction superintendent will create this list together the week before closing, and the team will complete all the work before your final walkthrough. 11

12 Step #6 Closing This step marks the end of your builder s work on the house and the beginning of an exciting phase for you. On closing day, you ll do a final walkthrough to verify that your punch list has been properly and thoroughly addressed. Closing is the official transfer of ownership, so you ll go through all the paperwork with your builder s closing team leading the way to make sure you understand every page. Documents include the purchase agreement, the title to the home and loan documents. You ll pay closing costs on the day of closing, but your first mortgage payment won t be due until a month after the last day of the month your mortgage closed. Know Before You Go: Bring your driver s license or other government issued photo I.D and a certified or cashier s check for closing costs. Closing can take one hour - if you are in full agreement of the terms of the sale and if you understand the documents you ll be signing - or several hours if you ll need an explanation for every document. Don t rush through the documents, as they re all legally binding. Plan your work or childcare arrangements accordingly so you don t feel the need to speed through the proceeding. Now that you have finished planning, designing, building, and closing, you get your keys and are able to start moving in. Remember to get a picture of your entire family in front of your brand new home! 12

13 Step #7 Warranty If you ve never worked with a home builder, you probably aren t familiar with the builder warranty. The average builder warranty is automatically transferable from one owner to the next and covers major structural damage to the home. That means if any major structural defect occurs within the specified time frame of the warranty, the warranty company replaces, repairs, or pays for the replacement or repair of the defect. For example, if a crack in a load-bearing wall causes damage, the builder warranty would cover repair. Some builders go a step beyond major structural damage in their warranties. Those who offer a Quality Builders Warranty, backed by Liberty Mutual insurance, provide extensive coverage throughout the life of the warranty. For instance: Year One Includes: Lot grading and drainage Roofing Siding and caulking Masonry and concrete Chimneys and fireplaces Windows and doors Interior walls and trim Year Two Includes: Lack of water supply Septic system fails Pipe leaks Clogged drains & sewers Years One Through Ten Include: Columns Bearing walls and partitions Floor systems (structural slabs, joists and trusses only) Roof framing members and systems (rafters and trusses only) Flooring and covering Carpentry Cabinets and countertops Cooling and heating Plumbing Electrical Water infiltration Ductwork separates Wiring fails to carry specified electrical load Foundation systems and footings (those that are an integral part of the home and structurally attached) Load-bearing beams Girders Lintels (other than lintels supporting veneers) Homeowner Tips If you keep your thermostat setting consistent, you will be more comfortable, your utility bills will be lower, and you will see less wear and tear on the system compressor. To prevent leaks from ice damming, be sure to clear the valleys in your roof and gutters of snow and ice. Change your furnace filters regularly to keep your system running smoothly and to improve the air quality in your home. Talk with your builder to better understand what your warranty entails and what steps to take if you have a claim. 13

14 About Westport Homes Westport Homes has rapidly become a leading home builder in the Midwest. Our people and processes, durability and assurance of quality home building have expanded our growth from Indianapolis to operations in Ft. Wayne, Indiana and Columbus, Ohio. Indianapolis Fort Wayne Columbus Our homes come equipped with an extensive list of included features that other builders consider upgrades, such as decorative lighting packages, finely crafted wood cabinets, impressive landscaping packages, and, on select plans, kitchen islands and luxurious master bathrooms. Additionally, we use building materials and suppliers that embrace sustainability and resource conservation. These green features make for a cleaner home and save you money each month on utility bills by using less energy and water. Find out more about Westport Homes at westport-home.com. If you re ready to talk about your dream home, contact us today. 14